All FMCG products rely heavily on flavours and fragrances. Despite accounting for less than 1% of a product’s volume and less than 10% of its overall production cost, fragrances and flavour powder play an important role in establishing a distinct product association with consumers.
There is a great possibility that the fragrances and flavours in the soaps, detergents, shampoos, skincare products, lipsticks, pan masala and after-shave lotions you use every day are supplied by the companies we will explore below. Let us take a closer look.
Despite the fact that natural fragrances are thought to be safe, healthy and therapeutic, synthetic ingredients continue to dominate the Indian market because they are cheaper (10-100 times less expensive than natural counterparts), last longer, generate a strong fragrance and give food flavours manufacturers in India more creative freedom.
You might be wondering why Fragrances and Flavours are related.
The answer can be found in an apple. When we eat or taste an apple, there are just three or four different textures and tastes to choose from, such as salty, bitter and so on. Isn’t it possible to replicate this? Sure, but what differentiates an apple from pineapple is all about the smell/aroma.
“Losing the pleasure of food and drink is a common complaint among those who lose their sense of smell,” according to a fun fact.
Furthermore, 60-70 per cent of identical raw materials and similar product development contribute to synergy.
The market for flavours and fragrances is booming and rapidly expanding, thanks to a growing worldwide population with increased disposable income—particularly in developing countries—as well as rising demand for processed meals and personal care products. According to a recent study, the industry was worth $27.9 billion in 2018 and is expected to be worth $35.1 billion by 2024, based on a 4% annual growth rate.
Key Market Drivers
- Lifestyles that are more health-conscious.
- Natural substances are becoming increasingly popular.
- Processed food demand is on the rise.
- Wellness and dietary supplements and nutraceutical products are getting more attention.
- In the cosmetics sector, there has been an increase in product launches and growth.
We will go over the four companies with minimal product overlap because the market is so large and have different chemistry types. We will talk about capabilities and business strategy.
- A wide variety of delicious flavours are available to delight your senses.
- They are one of India’s most desired brands for several foods and processed food industries, with a vast range of internationally famous flavours and a rich legacy to rely back upon.
- More than 1000 satisfied customers were served and the most delightful flavours were delivered.
- For confectionery, ice cream, beverages and other uses, Fab Flavours offers 100% natural flavours and extracts.
- 90% of the Rev comes from fragrances, with the rest going to flavours.
- In India, the corporation has a 13 per cent organised market share.
- The company has a 20%+ market share in fragrance. It is ranked third (with 100 years of experience) in flavours with a 5% market share (20 years of experience).
- The company has a 25% market share in Fragrances and a 35% market share in Flavours in the unorganised sector.
- The F&F vertical at OCL has over 65 years of expertise; nevertheless, it will focus more on the generic speciality Aroma Chemicals in the coming few years.
- CAPEX could create up to 350 crores in additional revenue over the following three years.
- Due to cost advantages, it will increase supplies to global F&F goliaths and improve competitiveness in the core F&F industry.
- Most contracts are for six months (due to price adjustments) and the company serves 200 customers in 65 countries. Exports account for about 30% of total sales.
- Avon Flavours is one of India’s most prominent food flavour manufacturers.
- In 1985, the Trishul Group of Companies and its three subsidiaries, Avon Flavours, Trishul Food Colours and Trishul Saccharin Pvt. Ltd., began the legacy.
- They combine innovation, technology, creativity, experience and commitment to generate natural-inspired flavours, food colours and seasonings.
- They are a renowned flavours manufacturer and well-known liquid food colour and snack seasoning firm in India.
Prepared meals, personal care and household items, luxury perfumes, cosmetics and beverages are just a few things F&F sector produces fragrances and flavours for. Raw or synthetic ingredients are both acceptable. Connect with us at Fab Flavours today if you want to learn more about flavour powder and fragrances.